Explain the pro cess by which a mortgage- backed security is created. What roles do Ginnie Mae, Fannie Mae, and Freddie Mac play? If Sandi and Dave repay their mortgage early because they are refi...

Explain the pro cess by which a mortgage- backed security is created. What roles do Ginnie Mae, Fannie Mae, and Freddie Mac play?

If Sandi and Dave repay their mortgage early because they are refi nancing or selling their home, what is the risk for the lender?